On 28 October 2024, the Hong Kong Government (“Government”) issued a policy statement on responsible application of artificial intelligence (“ArtIn”) in the financial markets, setting out the Government’s policy stance and approach towards this field.
Some of the key takeaways of the policy statement include:
- Financial institutions should formulate an ArtIn governance strategy to provide direction on how ArtIn systems should be implemented and used. A risk-based approach should be adopted in the procurement, use and management of ArtIn systems and human oversight will be crucial to mitigating the potential risks.
- As regards financial regulations, the Government took the view that the potential risks posed by ArtIn have been suitably reflected in the relevant regulations and/or guidelines issued by financial regulators. To keep pace with the latest developments of ArtIn and international practice (such as the emergence of explainable ArtIn), financial regulators will continue to review and update the existing regulations and/or guidelines as appropriate.
- The Hong Kong Police has been exchanging intelligence with international organisations, law enforcement agencies of different jurisdictions, and the ArtIn industry in order to address the challenges to cyber policing posed by ArtIn.
The full version of the policy statement can be found here.
